AIG Enters Reinsurance Agreement with Berkshire Hathaway Subsidiary

American International Group Inc. has entered into an adverse development reinsurance agreement with National Indemnity Co., a subsidiary of Berkshire Hathaway Inc., AIG announced on Friday. The agreement covers 80% of nearly all of AIG’s U.S. commercial long-tail exposures for accident years 2015 and earlier, which includes the largest part of AIG’s U.S. casualty exposures during that period. AIG will retain sole authority to handle and resolve claims. NICO has various access, association and consultation rights. AIG agreed to pay $9.8 billion in full by June 30, with annual int...